China's New Rich Dump Cash on American Million-Dollar Houses Mistress Villages Also Appear

05/20/2010

Secret China

Here is a residential area favored by the China’s Rich People. Any house here is above one million dollars.（Photo from World Journal in U.S. ）
China’s wealthy people are using cash to buy big homes in America. It is said that many corrupted Chinese officials are moving into those houses. According to a report by an American media source, the newly rich Chinese people pour into the U.S., taking advantage of the slow real estate market in America. They target houses above 15 million Hong Kong dollars. Most of them have plenty of cash to spend. Their aggressive buying has startled the American real estate developers and provoked discontent among the local residents who have to move.

According to the May 14th report on World Journal, any house in New Port Beach in Los Angeles is worth over one million dollars. It is one of the most favorite areas of Chin’s rich. Some American home renters were infuriated by the big spending Chinese speculators. They had to move because the houses were sold to rich Chinese.

The Corrupted Chinese Officials Are in the House Rush

In recent years, a bunch of rich Chinese people came to Southern California with a lot of cash in hand. Most of them are business people, taking advantage of the low real estate market and bought with cash many REO, short sale, or houses not put to market. Chinese clients like to buy houses with cash. The speculator’s favorite is the two-million-dollar detached house with a review. They know American real estate markets well and communicate frequently with people from their hometown. They will only place the money down when they are sure the price will go up.
The cities of the pick by Chinese rich people are those with good schools, many Chinese residents, and the price has a potential to go up, such as Diamond Bar, Walnut, Arcadia, San Marinov, and Irvine in California.

People with more money tend to live in areas where there are a lot of white Americans. The most popular places are the coastal areas of the Orange County, New Port Beach and New Port Coast. Rumor has it that that many corrupted officials and anonymous people from mainland China are also among the newest wealthy people to move into such places. They purchased the million dollars houses with laundered cash in order to cover up the corruption.

There are Mistress Villages in America as well

According to the report, in the past, most Chinese who bought houses in California were from Taiwan. But in recent years, they are all from mainland China. The local real estate brokers said, it started from 1990’s. There were a lot clients from Dalian, Shenyang in a new community in罗 兰冈. There was a rumor then that any one who bought a house of 300,000 dollars could acquire the green card. There also appeared a “Mistress Village”, because most of the owners are the mistresses of the rich Chinese.
The new Chinese buyers now are more from Beijing, Shanghai, Nanjing, Chongqing, and Dalian. They usually buy houses over one million dollars, paying full, in cash. Some clients even presented bank accounts with six million dollars, which shocked the American brokers. The even richer buyers would purchase the coastal areas, with New Port Beach and New Port Coast as their first pick.